The Federal Budget was handed down on 12 May 2026. Some of the proposals are the biggest rework of personal and small business tax in nearly 30 years. None of it is law yet. 

Here’s what’s on the table and how the Coalition has responded. 

Property investors and trusts 

Labor: 

• 50% CGT discount replaced with cost base indexation plus 30% minimum tax on real gains, from 1 July 2027. Gains accrued before that date grandfathered. 

• Negative gearing losses on established residential property bought after 12 May 2026 can only be deducted against rental or residential capital gains income. Existing properties grandfathered. 

• 30% minimum tax on discretionary trusts from 1 July 2028. Three-year rollover relief from 1 July 2027 for restructures. 

Coalition: Fight to block these in Parliament. Repeal them if elected at the next election. 

Small business 

Labor: $20,000 instant asset write-off made permanent for businesses with turnover up to $10m, from 1 July 2026. Loss carry-back reinstated for companies with turnover up to $1bn. 

Coalition: $50,000 instant asset write-off, permanent, for businesses with turnover under $10m. 

Individuals 

Labor: $1,000 flat work-related deduction without itemising, from 2026-27. $250 Working Australians Tax Offset, from 2027-28. 

Coalition: Index the bottom two income tax thresholds to inflation from 2028-29. Index all four thresholds from 2031-32. 

Other Coalition proposals 

• End tax breaks for electric vehicles. 

• Rewrite and simplify key laws (Corporations Act, Tax Act, Competition Act). 

Key takeaway 

These are proposals, not law. They will go through consultation with professional bodies and changes are likely before anything is legislated. No need to panic or rush to restructure yet. Once we see the legislation, we will be in touch about what it means for you. 

For a deeper walk-through of the Budget and what it could mean, watch our Budget debrief webinar here: Annual Federal Budget Debrief 2026